What are the reasons behind the high death rate of startups? We take a closer look in this article from Matteo Baccan.

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Tech startups have a 90% failure rate primarily because they're founded by technical teams lacking commercial skills. The main causes of failure include building products without market validation, running out of funds due to poor business metrics understanding, inadequate marketing, and having homogeneous teams without sales expertise. Technical founders often focus on perfect code rather than customer needs, leading to brilliant but useless products. Success requires combining technical skills with commercial acumen, active customer validation, and diverse team composition including non-technical co-founders who can sell and understand market dynamics.

Why Tech Startups Are Doomed to Die

Welcome to the Slaughterhouse of Good Intentions

Anatomy of a Predicted Failure: The Deadly Plague of “Tech-Only” Startups

Being Irrelevant (No Market Need): Creating Solutions Nobody Needs

Running Out of Cash but Being Full of Code

The Plague of Invisibility (Poor Marketing)

Case Study: Stripe – The Programmers Who Learned to Sell

Thanks for sharing this post, really interesting read!
I’d also like to add from my own experience: I’ve seen startups fail when founders pursued very technical products without having the necessary tech background. This often led to:
<ul>
<li>Pressure to deliver on unrealistic projects.</li>
<li>High developer churn as people struggled to maintain messy codebases.</li>
<li>A lack of willingness to listen to developers or take their reasoning seriously.</li>
</ul>

I myself had 0 of 3 successes in startup hell…

Fair enough, i m developer and really struggling with business knowledge 🥲